Global Fta Network Development

Since the 1990s, the number of regional economic integration agreements has increased significantly. In the period 1948-1994, the GATT received 124 notifications of RTAs (relating to trade in goods), and until 2005, about 330 regional trade agreements have been notified to the WTO/GATT. This period is the fastest time for the growing of regional trade agreements. So far, only has Mongolia in the WTO members, not participated in any regional trade agreement.Comparing with the regional economic cooperation before the 1990s, regional cooperation in new period displays a lot of new characteristics. For example, the forming of regional economies integration gives first place to bilateral Free Trade Agreement; The developing country is fond of the symmetrical North-South styled agreement; The content of the free trade arrangement is more broad; Many FTAs break the restriction of area and distance; Already, large-scale FTA being suffused with a regional and across a regional forms a trend, but develops slowly; Free trade arrangements giving first place to development form of " Hub and Spoke " , forming the global FTA network gradually and so on. These new characteristics will be able to give a profound and far-reaching effect on WTO and the world economic pattern.According to the traditional theory of regional economies integration, you will find the new characteristics contain many contradictions that the theory cannot be explained. They include in the following four aspects mainly:First is the contradiction between traditional integration theory and the FTA practice of developing nation nowadays; Second is the contradiction between traditional integration theory and the reality that the bilateral agreement develops quicker than the regional agreement; Third is the contradiction between traditional integration theory and the reality for the creation and development of bilateral trade agreement striding over the area; Fourth is the contradiction between traditional integration theory and the reality that regional and the bilateral agreement are prompt multiply , but the multilateral world liberalization course is blocked.The prompt development and the new characteristics of global regional economic integration and the four contradictions require that regional economies integration theory advances with time. To world trading system in nowadays, that more being attach importance to people is WTO/GATT, but not pay any attention to the network development and the "Hub and Spoke" typed structure naturally formed by the criss-crossing strings of FTAs. The formation and enforcing and the potential moving mechanism of global FTA network system, will exert a great influence on the motives, gain, cost , the choice of FTA partner for developing countries and the gain distribution of FTA, and it will play an important role on the world economy developing and the rebuilding the world trade pattern. On the above background, in spite of the basic mature for developed country integration theory, the European and American developed countries have accelerated the step for signing north and south FTA since 1990s, and become Vanguards and main strengths. Therefore regarding the developed nations, the income or the motive for the forming of the north and south FTA have already had the recent meaning, needed the new theory and the angle to explain. Regarding the developing nations, in contrast to the traditional region economic integration theory, the cost and the income of participating in a FTA have already greatly obtained the development. The region economic integration income does not limit to the trade creation benefit and the correlation dynamic benefit, the developing nation can choose different strategies and ways under the global FTA network development background, and participate in the FTA network development positively, and some developing nations also can weave on own initiative FTA network, argues vigorously into in the global FTA network the essential node, become the hub of the FTA hub and spoke structure, and hold the advantage in the world economics pattern. But this system's negative function which brings to the world multilateral trade system can also bring an influence on developing nations. Under the double mechanisms of the world multilateral trade system and the global FTA network development, the income of region economic integration has already greatly obtained the development.This article takes the above four deviations as research starting point, carries on in the foundation to the global FTA correlation theories which combs quite systematically, explains to the above four deviations. In this foundation, I propose the global FTA network development—this new viewpoint, and furthermore analyze the FTA network development characteristic, the political economical reasons as well as the influences on the world trade pattern and the economic integration strategy of developing nations. The thesis has provided correlation theories supporting to participate in the region economic integration and choose the FTA partner for the developing nation, also provided certain theory. support for as a whole designing China's region economic integration strategy.In order to explain quite systematically the traditional economic integration theory with the region economic integration practice deviation, this article first launches gradually the region economic integration and the correlation theories development and forms certain logical system, specially to the political economic analysis on FTA -integration front theory ,it has carried on the systematic induction and combs, In this foundation, separately to the customs union theory development, the developing nations integration theory narrates and comments to its serviceability as well as the influence that region trade agreement development brings to the multilateral liberalization. The fundamental goal of research is unifies with the practice, also may explain the past and instruct the future. Therefore, the following research taking the front theory as a foundation, may divide into two master lines: First, analyze the global FTA network development present situation, the characteristics and the reasons of forming; second, analyze the influence which the global FTAs network development possibly brings about. Among them, while analyzing the global network development present situation, it uses the latest data from WTO; while analyzing the influence that the global FTA network development brings to the world multilateral trade system, the negative influences from many different angles have been proved. In addition, taking the FTA network as one of background, it has proved the necessity and the FTA partner choice for the developing nation to participate in FTA. Through to the developing nation FTA network real diagnosis analysis, it proposes the strategy that China participates in the region economic integration, that is the double round moves together, constructing as soon as possible a Chinese own FTA network.The full text is composed by the introductory remarks and seven chapters of contents:The introductory remarks part mainly elaborates the background and the significance of the selected topic, the domestic and foreign research summary, the research mentality and the structure arrangement as well as the research techniques and the innovations.The first chapter is about region economic integration theories and FTA correlation theories and summary part. This part first launches gradually the region economic integration and the correlation theories development and forms certain logical system, specially to the political economic analysis on FTA—integration front theory, it has carried on the systematic induction and combs and comments to it. It has also explained in the narration to the above four big deviations from the new angle.The second chapter briefs the present situation and the characteristics of global FTA network development. This chapter uses the latest data announced by the WTO website, introduces the FTA network development present situation, and carries on the induction to the FTA network development characteristic, specially analyzes the H&S structure characteristics of the global FTA network development.The third chapter is about political economic analysis of the global FTA network development background and the reason. This chapter carries on the analysis from the world multilateral trade system angle of view, free trading area own superiority, the developed big nation impetus with the American foreign trade policy transformation, developing nation chase effect, asymmetrical FTA motive and so on.The fifth chapter is about the strategic choice for developing nations participating in FTA under the global FTA network development condition. This chapter utilizes the FTA correlation theories, unifies the FTA development the reality, separately elaborates the necessity and the partner choice for developing nations participating in economic integration, the related question and the establishment principle of north and south FTA, the lessons and the success condition of south- south FTA. Through the above analysis, we obtain the strategy that the developing nations participate in FTA under the global FTA network development condition.The sixth chapter is about the income that the developing nation participates in the FTA of the real diagnosis analysis. This chapter introduced the Mexican FTA network income real diagnosis analysis, including economic gain and non-traditional income real diagnosis analysis.The seventh chapter is about the strategic research which China participates in the region economic cooperation. This chapter has proved the necessity and present situation for China participates in the economic integration, the policy and the benefit assignment that China has carried on under the FTA network condition, proposed the "double round" moving together strategy and proposed China should construct as soon as possible its own FTA network strategy conception.This article innovation mainly manifests in:1. Selected topic innovationsAt present, there are many studies on the region economic integration as well as the FTA, but looking over the domestic and foreign correlation literatures, we have no once discovered this viewpoint about the global FTA network development. It is far from regarding the FTA network development quite systematic research. Therefore, the present paper selected topic itself is a further innovation based on the research foundation of the predecessor about hub and spoke theory. The global FTA network develops this formulation innovation significance to lie in: Not only it emphasized constitutes the FTA network by many FTA H&S structure, moreover further emphasized this system tendency development as well as the interaction among this kind of tendency development and the world multilateral trade system and the various countries' foreign trade policy. Thus conducting the systematic research to this selected topic is also similarly to have the fresh idea.2. Viewpoints innovations(1) Developing nation would be possible to choose both South-South FTA and North-South FTA to promote the economical development.(2) In H&S structure, the hub obtains the welfare possibly is bigger than the welfare which the global free trade obtains, thus causes H&S structure strengthening. The hub country to own benefit maximization pursue, has the possibility to become the global free trade the resistance.(3) Prevent the north -south integration possibly causes the developing nation policy space to decrease.(4) The influence that global FTA network development brings to world multilateral trade system.(5) Double round moves together, constructing as soon as possible a Chinese own FTA network.